Sugar prices shot up by 5.44 per cent on the Multi commodity Exchange (MCX) counter,as futures trading began after the market regulator lifted the ban after a gap of one-and-a-half years. After opening sharply higher,sugar futures continued its upward journey as traders indulged in building up huge positions in anticipations of further rise in the prices at the MCX. The sugar for delivery in January-month contract shot up by Rs 166,or 5.44 per cent,to close the session at Rs 3,216 per quintal,with a business turnover of 452 lots. Likewise,the sugar for delivery in February also gathered Rs 159,or 5.11 per cent,to Rs 3,269 per quintal,with an open interest of 307 lots. While delivery for March finished with a rise of Rs 142,or 4.48 per cent,to Rs 3,312 per quintal,having a business turnover of 165 lots. Although the market regulator Forward Markets Commission had lifted the ban on sugar futures from October 1,but it had not allowed exchanges to resume trading. "Brisk activity in today's session suggests that traders have cheered the relaunching of sugar futures trading",said an analyst. The MCX has launched trading in six contracts for the month of January to June. The government had banned sugar futures in May 2009 as part of its measure to control prices of the sweetener. India is estimated to see higher production of 24.5 million tonnes of sugar in the 2010-11 season after a gap of two seasons,according to official estimates. This is higher than the country's annual demand of 23 million tonnes.
